Under the terms of the buyout, Allegro will operate as a wholly-owned subsidiary of BigAir. Allegro's managing director, David Waldie, remains on board.

BigAir will pay $3.75 million in cash from its reserves and offer Allegro an equal value of BigAir shares.

There is also a potential earn out, capped at $3 million, should Allegro hit certain revenue targets in its first year under BigAir.

Allegro is expected to be earnings positive for BigAir in its first year.

"In combining Allegro's retail corporate customers, service offering and spectrum assets with BigAir's national network coverage and access to capital, the customers of both organisations will benefit from the expanded service offering and network coverage, and the combined engineering and commercial strengths of the two organisations," BigAir chairman Paul Tyler said in a financial filing.

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